Impact of IFRS 17 changes

1 Simplified building blocks of reported net income IFRS 17 Income Statement (Illustrative) Insurance revenue Insurance service expenses Net Insurance Service Result Net investment income Net finance expenses from insurance contracts Changes in investment contract liabilities Net Investment Result Fee income Non-attributable expenses Net Income/(Loss) Asset management¹ Group benefits Short term insurance product earnings Pass-through & fee- based insurance 1,2 CSM and risk adjustment amortization Insurance experience Onerous contracts Traditional insurance¹ CSM and risk adjustment amortization Insurance experience Onerous contracts Returns over discount rates Market experience Fee income ASO business fee income Indirect expenses Indirect expenses Direct & indirect expenses Direct ASO & indirect expenses 1 Certain wealth products are presented similarly to asset management, pass-through insurance, and/or traditional insurance 2 Market experience for these products flows through CSM unless CSM is insufficient, then it flows through the net insurance service result SUN LIFE IFRS 1 7 . MAY 2022 24 24

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